[edabreu]

Hi all. The best thing I can do in this forum is answer questions (if I can) or just tell you about some of my experiences in the last 6 years as a professional trader.

I have had moderating gigs for different organizations, and I have traded for a private hedge fund, and a few private accounts. I do not make millions, but I do make a decent steady living.

Now I spend my time helping people 1:1, and trading with a few friends.
So, if anyone in this forum would like some help with getting started, then maybe I can save you some heartache, frustration and maybe even some money.

But first off, I have to tell all new traders - there is no way around the dues you will pay to become successful at this. I wish it were going to be painless, but it is not. You are going to have to wade through the muck, the junk, the con's, the hype and the bs of this business, and 'endeavor to persevere' to come out the other side.
Best 2 cents worth is to not take anyone else's word for anything about whether a system is good or not. What's important is what works for you. There is no easy answer.
Most important is to concentrate on validating the trading claims made from any system or method. This means research, and actually looking up the trades. Look for TOE, PRICE, STOP, TARGET and Final exit and see if the fill was possible. If the trade is marked sim, don't be bummed out about it. As long as the trade was placed in real market time, cash or not, look to see if it was accurate and successful.
Second cents worth is do not trade any of your cash until you have successfully traded the method you are reviewing on sim in real market time. I have found this to be one of the hardest things for new traders to do, myself included.

So whatever I may say here in response to anything, keep in mind that I have gone through it also ...and (here is the sad part) someone also told me everything I may tell you, and I too had a hard time listening. So, I learned things the hard way, and it cost me lots of money, and lots of frustration and heartache. So, it will probably be the same for you... but I sincerely hope not.

[Eiger]

Interesting and useful post. At some point, I wonder if you could talk about what you think helped make the difference in turning the corner to consistency for you, and how you knew it was happening? I know the last part of the question may sound a little weird, but I think that self-observation and self-awareness are important keys to learning to trade well. To me, it is always helpful to learn how someone knew they were doing something they had been striving for, whether it's becoming consistent, being able to step up size, or whatever the challenge.

Eiger

[dealmein]

It's encouraging to see someone who has made it through the fire. What kind of trader are you? Day trader, swing or longer term? What markets do you trade? I'd like to know what you consider the topmost critical factors to "getting it right". Thanks and best of luck going forward.

[edabreu]

I don't think there was one single event that I can point to as being the turning point. I think it was a gradual realization that I was having more consistency and the bank account was looking pretty good. Recovering losses became easier, and I was experiencing much less stress since I knew recovery was just the next trade.
I trade with a few friends who noticed it sooner than I did, and started asking me why I took this or that trade, and questions like did this price point look good for a trade entry and things like that.
I began to send my results to the fellow whose indicators and methods I was using and started recording some of my trading sessions and sending them to him asking his opinion and commentary. Eventually he started asking me to beta test a new indicator now and then. Then one day he asked me if I would be interested in moderating.
So I did my first official public moderating gig and did very well. The rest just fell into place. Friends turned into clients, a few block accounts happened and I continued to trade. I still have ups and down,..only not severe and my trade rules are etched on my forehead in blood and scar tissue.
That is probably one of the most crucial events of all. When I finally knew that I was not trading the price action, but trading my trade setups and rules. I look for the setup and the rules that must be met, when it happens, then it is a go. I fulfilled my responsibility. What happens in the market afterward is not within my power to control. I also learned that +1 tic was better than a stop out, and even if the trade did go to target, I did not miss anything. I trade very defensively. Capitol preservation is my number 1 concern.

A few of my favorite axioms are:
There is always another trade.
Don't be a dick for a tic.
Trade less make more.
Become the 1 point king.

I also came up with something I call the acid test. It is a sim study of your trading with specific goals and a time period. I use it to help traders who are looking for a way to accurately measure their performance level as a trader and to pin point the weak spots. I also run through it myself on a regular basis. The acid test along with a detailed journal (the best one I have ever come across is here tradingjournal@live.com) can really help. Its funny, but I have noticed that no matter how many times we are told to trade sim as real, the reality is that we all tend to fluff (cheat) the sim. So when we go to cash, we choke. So, if you are sim trading, keep a very detailed journal. If you find yourself cheating (moving your stop, doubling up, or some other nonsense) write it down, read it and remember that when you go to cash...you will loose!

I day trade the ES(mS&P) and the FESX(EuroStoxx). I have traded the 6E(Euro), YM(mDow), and the ER2 (old exchange) and have recently started to trade the ZB(30yT). I use Ninja.

I am not a sophisticated trader. I keep it simple. My charts are pretty simple. The most complicated market theory I use for S/R and targets is Market Profile. I have found this to be of enormous value in my bigger understanding of price volume and time.

I would say to the newest traders to stick to one instrument in the beginning, 1 big time frame chart, 1 trade setup chart (no more than 3 trade setups), 1 shorter time frame entry chart. Pay very close attention to what price is doing. Don't think so much about why price is moving. Just trade what you see. There is so much 'stuff' that is going to come into play, that the least of your concerns should be your tools, trade setups and rules.

[Mindset]

Become the 1 point king.

Can you expand on the above please?

[edabreu]

What I mean is to not be afraid to take small bites out of the market - 1 ES point - at a time. Often I have seen traders insist on getting 3, 4 or whatever points out of each trade, and turn more than 50% of their winners into losers. I will take a BE over a stop out any day.

I think this attitude that the trade HAS to work because the indicators say so comes from indicator vendors who fool new traders into believing that the market is willing to give you that much. IMHO I have found that the market will give you nothing. You must take what is available and know when, once in a trade, you loose your advantage. So, for me, each trade begins as a scalp to first target. Once I get to first base, then if I have acquired some of the markets money, I start to hold out for the runners. Another excellent strategy for money management is the free trade.

So, become the 1 point King means if you must take 20 trades with 1 point each that is 20 points and an excellent day. 1 point times x amount of cars...you do the math.

The acid test will help you measure your performance level, and help you gain the confidence to KNOW that your batting average to first target is good enough to allow you to just take the 1st point and get to a BE or scratch stop asap.

[BennyHey]

Can you go into your individual methodology a little more??

I would specifically like to know:

What R/R Ratio u use?
If you are a strict daytrader or do u hold overnight?
What indicators do u use and what patterns are you looking for?
What are some things to avoid (other then what you've mentioned)?

[Eiger]

Originally Posted by edabreu »

What I mean is to not be afraid to take small bites out of the market - 1 ES point - at a time. Often I have seen traders insist on getting 3, 4 or whatever points out of each trade, and turn more than 50% of their winners into losers. I will take a BE over a stop out any day.

I think this attitude that the trade HAS to work because the indicators say so comes from indicator vendors ...

I agree with you about the vendors - way too much snake oil out there. I also think it has a lot to do with the trader's ego getting hooked, which is never a good thing. "I've put the trade on, so it HAS to work." For some reason, the ego doesn't like to see the risk in a trade or be told it could be wrong.

Also, taking ONLY one point is not a very grand trade from the eyes of the ego. It's always the ego looking for more. Funny, though, when getting more points doesn't work out and we end up with a loss -- then the ego is telling us, "You idiot, you should have taken the point!"

A lot of reaching 'success' in trading is less about the indicators and more about self-awareness and making changes in your behavior, which sometimes aren't intuitive -- at least this has been my experience.

Your posts ae very good. Thanks for the contributions.

Eiger